Monday, 10 December, 2018

USMCA trade deal impact on Alabama farmers

Trump: Trade deal returns US to ‘manufacturing powerhouse’ Donald Trump says new trade deal is 'most important ever'
Orlando Vargas | 05 October, 2018, 13:17

Guess what: Trump made a trade agreement that lets Canada continue to charge 300 per cent tariffs on nearly all dairy products.

The federal government abandoned dairy farmers during global trade talks by "throwing us under the bus", said a Surrey farmer who said he's anxious about the future of his family's farm.

An 11th-hour agreement Sunday night between the US and Canada sealed a new trade deal between the three primary North American economies that could increase the cost of building cars in Mexico.

In 2015, the federal government announced a plan worth $4.3-billion to compensate dairy, poultry and egg producers and processors affected by trade agreements with Europe as well as the Trans-Pacific Partnership, which covers 11 countries.

"I want to start by saying to dairy farmers that compensation is justified".

"Dairy farmers across the country have faced challenges with those trade deals".

He said Canada produces milk to supply the domestic market and uses the supply management system to balance it and to make sure there is the proper amount of milk that is produced for Canadian consumption.

That's the same approach it took with CETA, the trade deal granting greater market access to European dairy producers. US officials intend to sign the agreement with Canada and Mexico at the end of November, after which it would be submitted to the US Congress for approval, a senior US official said.

That money comes in the form of grants to farms to update their equipment.

The agreement was forged just before a midnight deadline imposed by the U.S.to include Canada in a deal reached with Mexico late in the summer.

The deal could prompt automakers to build more cars in low-wage countries, but tariffs now imposed on cars built in China would make that a tough proposition.

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"And frankly we're thinking about just taxing cars coming in from Canada, that's the mother load, that's the big one".

"It will strengthen the middle class, and create good, well-paying jobs and new opportunities for the almost half billion people who call North America home", the two countries' joint statement said.

Terminating NAFTA outright, they wrote, "could potentially shrink the economy by up to 1.2 percent annually and reduce net USA employment by as many as 3.6 million jobs, while forcing higher costs on working families". And he can tell his base that he got the United States out of NAFTA - "the worst trade deal ever made".

"How do we get into a binding agreement with a country that says they have to put tariffs on us because we're a threat to their national security?" Previously, American farmers could access about 10 per cent of the market-now, closer to 14 per cent.

Trump has used USA tariffs on billions of dollars' worth of imported goods from China and other nations as a negotiating tactic and said the North American deal offered evidence that his approach was working.

Canada is the top exporter of steel and aluminum to the United States.

"We fail to see how this deal can be good for the 220,000 Canadian families that depend on dairy for their livelihood", Lampron said in a statement.

The quota would allow for significant growth in tariff-free automotive exports from Canada above current production levels of about 2 million units, safeguarding Canadian plants.

Political deadlines are often fuzzy but Canada and the United States appear to be working towards some major compromises and a NAFTA deal.

Canadian dairy farmers, as you might expect, are not happy about the changes.

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